In April 2017, the Southern Ontario real estate market saw an unprecedented jump in demand. Prices and bidding wars before the introduction of new real estate laws started to encourage a slow-down within the market. As seen in the graph below, since January of 2017, condos in Kitchener and Waterloo have been receiving full asking price or more with a peak occurring in April where, on average, condos were selling for 108% above their asking price.
It is difficult to say with certainty what caused this boom which led to an increase in prices of about 34% in the urban areas of Kitchener-Waterloo and similar growth in Toronto, Hamilton and other urban centres. Many think the influence of foreign buyers and investors within Toronto started to push prices up which caused a ripple effect in surrounding urban areas. Others have speculated that it is mostly due to a change in buyer preferences from suburban regions to urban cores and not enough supply to support those moves.
Regardless of the reasoning, we can only look forward and use this information to help you with your buying or selling needs right now. So here’s what the market stats are telling us:
You are starting to get some of your buying power back. As the market settles and supply of new housing increases, you will have more choices to get what you want and more time to think through the options without having to make a hasty, and potentially wrong, decision.
However, you also need to ensure that you are working with the right agent who understands the volatility of the market and can assure you that your unit is being priced correctly and that you will be in a good position in the future market. Also, as new condominium projects come onto the market, it is necessary to know how your purchase will compare once new supply gets absorbed in your surrounding area.
Selling takes a lot of work between cleaning, staging, having photos taken, doing showings and open houses and potentially haggling with the new buyers. So although it may have been a great time to sell this April, some of you may not have been ready during that time.
So what happens now? Well, although there may not be a multiple offer over-asking situation similar to a few months ago, you can still take advantage of this hot market and maximize the saleability of your property with the right steps. With the right real estate agent, marketing and staging, we are still seeing units sell for above asking. The incredible sales team at Condo Culture is still providing our listing clients with over-asking offers using a few key tricks.
With impeccable marketing and a reach of over 2000 prospective buyers, Condo Culture’s new website provides a platform where all buyers and sellers can be connected so each find the perfect fit (it’s a lot like Tinder… but for real estate!). We also offer many listings services so you can take the worry out of listing your property and be confident that we will provide unparalleled marketing both in our stores and online, deal with all the grunt work so you don’t have to and get the maximum value for your unit.
*Statistics were gathered on July 19, 2017 for condominiums that were sold between Jan.1/2017 and July 19/2017 in the cities of Kitchener and Waterloo from the Cambridge Association of Realtors.
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